Archives

Composable enterprises are a new paradigm for business. Made up of smaller, independently operating units that can be easily combined and reconfigured to meet changing business needs, it’s a model that is gaining traction. 

Packaged business components make it possible for businesses to respond to changes in the market, customers, and technology quickly and more effectively. 

In this whitepaper, readers will learn:

  • What a composable enterprise is and how the model is used to develop new ideas by combining pre-configured business parts.
  • How the composable enterprise model reduces time to market, improves flexibility, boosts innovation, and drives higher productivity.  
  • Why companies are using packaged business components and how they’re doing so successfully.
  • What factors are driving the adoption of the composable enterprise model and how they’re impacting businesses right now.
  • Precisely what organizations need to consider when putting a composable enterprise model in place.
  • Tips for successfully implementing a composable enterprise model in your organization.

Is sustainable growth keeping you up at night? Are you (like many) still using time-consuming processes and outdated technologies?  

Keeping up with technological advancements is hard; coming from behind is harder. If any of the above resonates with you, it's time to look hard at your digital transformation strategy.

But what is it, exactly?

Digital transformation is more than a buzzword. It’s a necessary shift today for a sustainable business tomorrow.

In this article, we’ll explore the meaning of digital transformation, what it looks like in practice, how to do it successfully, and why digital transformation is so important for companies to remain sustainable and profitable in the years ahead.

What is Digital Transformation?

Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes to how companies operate and deliver value to customers.

In today’s world of digital disruption, businesses must keep up with the changing technological trends by adopting new technologies and processes to stay competitive. Digital transformation is integral for automating processes to find efficiencies and reduce costs, improving customer satisfaction, shoring up data and information security, developing solutions faster, and more.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

Digital transformation is often confused with digitalization and digitization. To clarify, here’s what each means:

Digitization is the process of converting analog data into a digital format. For example, this could involve scanning documents, then saving them as digital files.

Digitalization is the use of digital technologies to enable a business to operate better or become more efficient. It may involve using cloud computing, automated processes, machine learning, artificial intelligence, and new methods.

What’s the Purpose of Digital Transformation?

The purpose of digital transformation is to enable organizations to adapt to the ever-changing demands of the modern business world. By utilizing the latest technologies, companies can gain a competitive edge by increasing efficiency and customer satisfaction.

Digital transformation helps companies identify new opportunities and gain insights into their internal processes and customer behavior. This is why digital transformation is essential for any organization trying to remain agile and responsive to customer needs.

With digital transformation, businesses can stay ahead of the competition by unlocking new levels of operational success and profitability.

COVID’s Impact on Digital Transformation

The COVID-19 pandemic has changed the digital transformation trend from gradual change to accelerated adoption. Businesses quickly recognized that working remotely was beneficial in keeping employees safe while still staying productive. As a result, most companies embraced the virtual workplace.

Now, companies are adopting digital processes and workflows more quickly to fit the remote or hybrid work model. To help accelerate change, cloud computing, and remote collaboration tools have become essential for many businesses.

Organizations of all sizes are now benefiting from more efficient data management, increased analytics capabilities, improved customer experiences, and lower IT costs due to the increased scalability of digital transformation.

The Benefits of Digital Transformation

Digital transformation can revolutionize organizations by affecting every aspect of their operations. Some of the key benefits include:

Improved Efficiency and Productivity

Improved efficiency and productivity are cornerstones of success for any business in the digital age. By embracing digital transformation, companies can unlock the power to design custom experiences that meet the needs of their customers while creating new opportunities for growth.

In addition, digital transformation can help businesses save time and money by automating manual processes, streamlining operations, and leveraging data-driven insights to gain a competitive edge.

With improved efficiency and productivity, businesses can better serve their customers while gaining valuable insights into their needs and preferences. Companies can also use digital transformation to identify areas where they need to improve their processes or services to stay ahead of the competition.

Enhanced Customer Experience

Enhanced customer experience is another key benefit of digital transformation. By leveraging the power of technology, companies can create tailored customer experiences that exceed their expectations.

Digital transformation enables businesses to optimize their processes and services to deliver a seamless and efficient customer experience. With access to data-driven insights, companies can understand the preferences and needs of their customers to develop personalized solutions for them.

In addition, digital transformation opens up new communication channels, such as chatbots and online support, enabling businesses to provide quick responses and solutions when customers need them most. Finally, with an enhanced customer experience, companies can increase loyalty among existing customers and attract new ones.

Increased Innovation

Digital transformation is essential for any business looking to innovate in the modern age. By leveraging the power of technology, companies can streamline their processes and create innovative solutions that meet customer needs. In addition, with access to data-driven insights, businesses can identify new opportunities and develop strategies to capitalize on them.

Digital transformation also enables businesses to stay ahead of the competition by embracing automation and artificial intelligence, two technologies disrupting almost every industry in today’s world.

Improved Decision-Making Capabilities

Digital transformation improves decision-making capabilities. By leveraging data-driven insights, businesses can make informed decisions based on real-time data. This leads to better outcomes for both customers and the company itself. It can also help them gain a competitive edge by responding quickly to changes in customer behavior or trends in the industry.

In addition, digital transformation enables companies to remain agile and adapt quickly to changing market conditions. Companies can use analytics tools such as machine learning and predictive analytics to assess their current situation and predict future scenarios, allowing them to make smarter decisions faster.

Tips for Future-Proofing Your Business with Digital Transformation Success

Digital transformation is an ongoing journey, and organizations must remain committed to continuously improving their operations to stay ahead of the competition.

Click to read Managing Complex Digital Transformation Programs

By taking time to understand the current system and processes and implementing the necessary technology, businesses can ensure they are correctly leveraging their digital transformation. This includes assessing the current state of IT systems and identifying potential risks or gaps in data security.

Digital transformation initiatives can also identify and target new markets and opportunities. Organizations should look for ways to leverage customer data, analytics, and automation to gain insights into new customer needs or services.

Additionally, consider how digital technologies can help you better understand customer trends and behaviors to meet their changing needs, as well as address any internal process concerns. Here are some more tips for successful digital transformation.

Involve the right people

Digital transformation involves many stakeholders, processes, technology, and resources. A change management strategy will help ensure alignment between departments. Additionally, it’s important to provide employees with adequate training to become familiar with the new system and develop communication plans to keep everyone informed throughout the process. Fostering an environment where change is embraced and encouraged is essential.

Digital transformation is a complex undertaking, which is why companies typically enlist an experienced partner’s help to ensure they focus on the right areas and have the resources they need to succeed.

Stay ahead of future disruptions with a dedicated team

Create a dedicated team to support leadership and cross-functional teams across the business in exploring digital transformation opportunities, assessing and prioritizing, then executing. Three key roles here are:

The analyst, who can create the case for a digital transformation investment based on business value and data. This team member is also essential for analyzing the impact of innovations on other areas of the business and finding ways to improve and map out processes.

The visionary; a big, bold thinker with a vision for the company’s digital future and the ability to build a digital-first culture at every level of the organization.

The project manager, whose exceptional planning skills ensure each digital transformation is supported from ideation through implementation and maintenance. 

Together, this dedicated digital transformation team brings the vision, data, and processes it takes to win executive buy-in, ensure positive ROI, and successfully transform the business. These teams often involve external partners with specialized skills and insight.

Prepare to move quickly with an implementation framework

Once you’ve assessed a need and identified that this digital transformation is one you’ll move forward, how will your team(s) implement it? Cut the learning curve and implement faster by creating a framework consisting of best practices, proven processes, and lessons learned. 

These don’t often exist in organizations new in their digital transformation journey. In that case, look for a digital transformation partner with their own digital accelerators – pre-built technologies and engineering best practices – to accelerate your implementation at a reduced cost, without sacrificing quality.

2023 Digital Transformation Trends

In 2023, we expect to see a continued focus on digital transformation strategies and technologies that can help businesses streamline operations and improve customer experiences.

Here are some of the top digital transformation trends we anticipate will dominate the landscape this year:

  1. Automation: Automation tools will be vital in allowing businesses to reduce manual labor costs and increase efficiency across various departments. These tools can help organizations improve customer service with faster response times and personalized services.
  2. Cloud Computing: By embracing cloud technology, businesses can access data and applications securely over the internet, eliminating the need to maintain their servers or infrastructure. Cloud computing offers greater flexibility in organization-wide systems by making them easier to scale and adapt as needed while improving user experience through improved performance and accessibility.
  3. AI and Machine Learning: Artificial intelligence and machine learning will become integral components of any successful digital transformation strategy, driving advanced insights from large datasets and helping teams make informed decisions more quickly.
  4. Cybersecurity: As more companies move their operations online, cybersecurity will be essential for protecting against potential threats such as cyberattacks, malware, data breaches, and other malicious activities on networks or systems.

Digital Transformation FAQs

How can I measure ROI on digital transformation?

Measuring return on investment (ROI) in digital transformation starts with defining what success looks like for the individual company. To calculate ROI on digital transformation, organizations should consider quantitative and qualitative metrics that help assess the value of their efforts.

This can include assessing customer satisfaction, operational efficiency, and cost savings. Additionally, organizations should track the progress of their digital transformation efforts to ensure they are meeting their goals.

To accurately measure ROI, companies must have established metrics for a baseline. Then, over time, businesses can track the impact of any digital transformation efforts on those baselines.

To properly monitor results across the entire life cycle, it can be beneficial to outsource digital transformation assessment and management.

Since companies typically deal with an upstream change or the transition from a business-ready to an engineering-ready project and a downstream change when a project goes from an engineering-ready to an acceptance-ready project, these changes can be challenging to implement.

Why is digital transformation important?

Digital transformation fundamentally changes the way organizations operate and deliver value to customers. It is important because it allows businesses to adapt to changing customer expectations, optimize operations, and stay competitive in a rapidly evolving digital landscape.

How do I get started with digital transformation?

Getting started with digital transformation involves several steps, including assessing your current technology infrastructure and identifying areas for improvement, developing a clear digital strategy, investing in the right tools and technologies, and building a culture that embraces innovation and change.

What are some common challenges associated with digital transformation?

Some common challenges associated with digital transformation include resistance to change, difficulty in integrating new technologies with legacy systems, cybersecurity risks, and a shortage of skilled digital talent. Overcoming these challenges requires a comprehensive approach that addresses both technical and cultural issues.

More helpful resources:

5 Real-Time Payments Lessons from India’s Wildly Successful UPI

On a recent trip to India, I was inspired to rethink current real-time payment opportunities for U.S. businesses of all kinds. QR codes for cashless transactions are ubiquitous and you’ll see them everywhere you go in India. 

It's estimated that nearly 65% of all payment transactions that happen in India are done through UPI (Unified Payment Interface). Indian merchants processed 19.65 billion transactions in volume and Rs 32.5 lakh crore via UPI in Q3 2022 alone, with the bulk of transactions taking place in popular apps such as PhonePe, GooglePay and Paytm Payments Bank App.

And so, as we visited a prominent historical site in South India, I had stepped out in the morning to drink a cup of 'chai' (tea). The cost of the tea was 5 Rupees – less than 10 cents in USD. I did not have the required cash on me and paid the Chaiwalla digitally, in real time, by simply opening my mobile phone and scanning a QR code. 

It blew my mind how far India has come in terms of adopting real-time payments and cashless transactions. What are some of the lessons businesses in the U.S. can learn from India's runaway success with UPI systems?

What is India’s Unified Payments Interface (UPI)?

The Unified Payments Interface was developed and launched in 2016 by a non-profit government entity called the National Payments Corporation of India (NPCI). UPI allows users to instantly transfer money from one bank account to another using a mobile phone.

UPI enables users to link one or more bank accounts to a mobile phone, and transfer funds between them without requiring the bank details of the beneficiary. It provides a single platform for various banking services such as money transfer, bill payments, and merchant payments.

Operating on a two-factor authentication process that includes a unique Virtual Payment Address (VPA) and a Mobile Personal Identification Number (MPIN), UPI makes it secure and convenient to process digital payments. It has played a significant role in promoting a cashless economy in the country.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

5 Real-Time Payment Lessons We Can Use

There are several lessons that the United States can learn from India's implementation of UPI. Here are a few key outcomes and benefits, and what we can learn from them.

1. Promoting cashless transactions

UPI has been successful in promoting cashless transactions in India, which can help reduce the use of physical currency and improve transparency in financial transactions.

2. Interoperability

UPI allows for interoperability between different banks, which means that users can transfer money between different banks seamlessly. Real time payments adopted in the U.S. by over 400 financial institutions through the likes of Zelle does not allow for this interoperability.

3. Encouraging innovation

UPI has encouraged innovation in the fintech space in India, with many startups building innovative products and services on top of the UPI platform. You can use mobile applications from Paytm, GooglePay, BhartPe etc. on your mobile phone to do UPI.

4. Financial inclusion

This is a huge part of the success in India. Everybody from a small tea vendor on the street to a large merchant in a high-tech shopping mall, can use the UPI infrastructure. 

5. Transaction security

UPI has been designed with the customer in mind, with a focus on ease of use, security, and convenience. With your mobile phone acting as the key part of the identity, every transaction is secured either through face recognition or through an OTP (One-Time-Password) mechanism. 

Overall, the implementation of UPI in India has been a runaway success and has revolutionized the payments landscape in the country. The United States can learn from the Indian experience and adopt similar measures to improve the financial ecosystem and promote financial inclusion.

Recommended reading: Fintech in the Metaverse: Exploring the Possibilities

The Current State of Real-Time Payments in the U.S.

The United States has made significant strides in implementing RTP payments in recent years. The Federal Reserve launched the Faster Payments Task Force in 2015, for example, to explore ways to improve the speed, efficiency, and safety of payments in the US.

In  2017, the task force released a report recommending the creation of a faster payments system and as a result, several real-time payments systems have been developed and launched in the US in recent years. The Clearing House (TCH), a consortium of US banks, launched its real-time payments (RTP) system in 2017, which allows for instant payments between banks 24/7/365. The RTP system has seen significant growth in recent years, with over 400 financial institutions in the US now offering RTP to their customers.

In addition, other real-time payments systems have been launched in the US, such as Zelle, which is owned by a consortium of US banks and allows for instant peer-to-peer payments between bank accounts. Venmo and Cash App are also popular real-time payments apps that allow users to send and receive money instantly.

Looking Ahead to a Friendlier RTP Future

While the US has made significant progress in implementing real-time payments, there is still room for improvement. Existing real-time payments systems are not yet fully interoperable, which means that users may not be able to send money between different systems or banks. In addition, concerns about the security and privacy of real-time payments, and regulatory issues must be addressed.

There is still work to be done to ensure that these systems are fully interoperable, secure, and regulated. With continued investment and collaboration between banks, fintech companies, and government agencies, real-time payments have the potential to revolutionize the payments landscape in the US and improve the speed and efficiency of financial transactions for consumers and businesses alike.

Learn more: 

A recurring challenge in software — especially for newly developed systems or major upgrades — is knowing when you’re ready to deploy or ship for the first time in production. When is “good enough” actually “good enough?”

In this article, we’ll explore this concept of good enough and the nuance around it. You’ll learn key differences between internal and external success, how ship decisions are made by various stakeholders, and where teams and individuals often disagree on precisely what makes a product or update “good enough” and ready to go. Finally, we’ll work through different approaches using real-world use cases and see what lessons can be learned from those.

Part 1: Internal vs. External success

Perceptions of risk depend heavily on company culture, with fear of failure (individually or corporately) being a major driving factor. Most companies agree that a reputation for secure, high-quality products is important to achieve market and business success. 

What differs is how success is measured: internally or externally. 

Companies with an internal focus generally use key performance indicators (KPIs) and other internally-defined metrics to provide incentives or disincentives to drive desired employee and departmental behaviors. These metrics are proxies for desired outcomes; for example, “minimize the number of security penetration vulnerabilities detected post-ship.” 

Causes and risks of an internal focus

Many large companies, in particular, see proxy metrics as the only way to effectively communicate goals throughout a complex organization, to achieve alignment, and to measure success business function-by-function or department-by-department.

Unfortunately, this focus on modeling desired outcomes using proxy metrics often results in the individuals within the company seeking to maximize (or minimize) the metrics that apply to them, rather than focusing on the overall success of a given product in the marketplace. 

No one in this system has the wrong intent. Who could argue that it’s good to ship with more security vulnerabilities? By seeking to eliminate security vulnerabilities, the security group (for example) is merely seeking to do its job. With an internal focus, they will see their job as ensuring compliance to the policies the team has established to achieve the goals set by upper management. 

However, a department-by-department optimization approach can lead to a bad outcome for the company. It is impossible — or at least economically infeasible in a finite time — to create a product of any kind, software or hardware, that is literally perfect in every dimension. And even in those areas where the product is “perfect,” time:

  • exposes new patterns of usage
  • introduces new vulnerabilities in underlying infrastructure or integrated systems
  • results in changes in the operating environment
  • spreads new usability paradigms
  • and introduces other factors that will make even an initially ‘perfect’ product imperfect. 

Successful products are a balance of features, time to market, and non-functional requirements like usability, security, quality, and many others. Which aspect of a product should be emphasized at a given time to achieve a given business outcome requires balance across multiple factors that are sometimes — in fact, often — in conflict. 

In an internally-focused company, ship decisions are often made by executives based on the input from the various business functions and departments. Each of those stakeholders is trying to follow corporate direction by maximizing (or minimizing) the appropriate metrics. 

This can result in some groups having an incentive to avoid shipping a product at all, in order to minimize their department’s or their own exposure to a potentially negative impact on their group’s KPIs. And sometimes, not shipping is the right thing to do. 

On the other hand, in an internally-driven culture, a product that might otherwise be highly successful in the market might never be seen as “good enough” by all its internal stakeholders because shipping it poses a risk to a particular group’s KPIs or other departmental incentives. No one is doing anything ‘wrong’ or ‘dishonest’ in this scenario;in fact, the groups are responding to the direction they have been given by upper management in the form of these metrics. 

However, the net effect is that such companies tend to be highly conservative. They tend not to ship innovative products because they pose a risk of failure to meet internal metrics for one group or another.

How externally-focused organizations differ

Externally-focused companies, on the other hand, are market-focused and look for their signs of success or failure from their buyers, customers and end users. They, too, are sensitive to the risk of failure, but it’s commercial failure in the marketplace that keeps them up at night. 

No single group can afford to place its individual departmental success or mission above the goal of shipping a successful product. This is not out of altruism, or because the individuals involved have different skill sets, quality standards or personalities than their counterparts in an internally-focused company. Rather, it’s because of the way success is measured. 

Recommended reading: Culture at the Core: A Playbook for Digital Transformation

In an externally-focused company, the whole team — all departments — succeed or fail based solely on the success of the product in the market. No department is viewed as successful, even if it hits its individual metrics, if the company or the product fails. Market success is a shared goal, and all teams in an externally-focused company have no choice but to work together to achieve it.

That doesn’t mean that teams within a market-focused company always agree with each other. Far from it. 

Product Management and Engineering may disagree on dates and feature sets; the quality and security groups may raise red flags that are heeded or ignored; DevOps and Ops may fight with the business over tool choices and FinOps. What is different in an externally-focused company, though, is that all of these disagreements are in pursuit of a common goal rather than a departmental goal. 

That shared goal is to quickly ship a featureful-enough, secure-enough, sufficiently high-enough-quality product that succeeds in the marketplace. In this context, maximizing the metrics of an individual group is irrelevant if the product fails, because all lose. 

When all stakeholders are focused on a common goal, disagreements tend to be healthy and rapidly resolved because all are in pursuit of a common goal: product success.

Small companies, and startups in particular, tend to be externally, market-focused. The major incentive and KPI at a startup is stock options, and these only become valuable if the product and company succeeds in the marketplace.

Differences in focus between small and large companies 

Small companies tend to have only a small number of products — sometimes just one. If the product and company do NOT succeed in the marketplace, then a small company will likely close down, making the stock options worthless. Despite the market risk, these factors and others align to make startups externally focused (which is part of their attraction to many good engineers and investors).

Large companies may be or become externally focused, as well. Apple is a very good example. Before Steve Jobs rejoined as interim CEO in the late 1990s, Apple had become very much an internally-focused company. Jobs’ and Apple’s tremendous achievement was due in large part to Steve’s success at flipping Apple’s focus from internal to external. 

He did that by getting a critical mass of people focused on their product’s success with consumers, and in the marketplace. Jobs did this while maintaining what most of us would agree were high quality and security standards. “Externally focused” does not mean “sloppy.” 

Externally focused does mean “risk-based,” though. As a market-focused company, it does not make sense to put effort into areas that fail to generate business value. 

This means that instead of absolute, unalterable, KPI- or departmentally-driven standards for each individual aspect of a product, an externally-focused company instead looks at how best to maximize the business value of the entire product for each release. That is the essence of creating a product that is “good-enough,” “secure-enough,” “featureful-enough,” and so on. This does not mean ‘sloppy,’ but it does mean a ruthless focus on creating release-by-release business value.

Now, how do you quantify “good enough” when making risk-based ship decisions?

Part 2: Approaches to “Good Enough”

With this understanding of how market-focused companies make risk-based ship decisions based on maximizing the business value of each release, we can begin to explore different ways to quantify “how good is good enough.”

Achieving external market-based success often requires a balancing act. In general, you want to get a new product in front of real, live customers as soon as possible. This not only delivers value to your users, but also allows you to gather their feedback so you can improve the product (“pivot or persevere” in Lean/Agile terminology). Success here also lets you unlock potential revenue streams from investors, internally from your own company, and from customers themselves. 

On the other hand, if your product is not “good enough” when customers first see it, you may lose them irreparably and fail in a different way to unlock your revenue stream. In other words, there are risks in shipping, and also risks in not shipping. 

How do externally-focused companies make the tradeoff?

I started studying this issue back in the 1990s. At that time, I read a book that described Hewlett Packard’s quality criteria for at least some of their products at the time (this is pre-split, before HP became “HP” and “HPE”).  

The book said that HP’s quality criteria was met for a given product when it became more expensive to find the next critical bug internally through testing than the cost of letting the customers find that critical bug post-ship. In other words, they would ship when it was more costly to find the bug through testing than to let the customers find it, reputation and remediation costs included.

This was a very high bar in the ‘90s. In those pre-cloud days, systems were deployed on premises, on customer equipment. For at least some systems, replacing them in the field required flying technicians to multiple points of the globe to physically install from media, apply configuration options, transition data, and perform other operations. Replacing a critical system in the field was expensive, so this quality bar was very high. Today, of course, we can deploy in production automatically multiple times a day, so it might not seem like a big deal. But it was then.

Future events are always probabilistic; we don’t know for sure how much testing will be required to find the next critical bug, or how much customer use will uncover it. We can use tools like the defect discovery rate and projections based on past releases to put numbers on these events. But in the end, we are balancing one uncertainty or “risk” against another. This 1990s era HP criteria was therefore “risk based;” that is, they shipped when the probabilities dictated that it was likely that it had become more expensive to continue testing, than the likely cost of finding and remediating a serious quality issue found after shipping. 

I followed HP’s example with a number of products in that timeframe, and for many of them I was accused of being too conservative as the customer never did find that next critical bug. Still, we were playing the odds and very conscious of it.

HP’s approach appealed to me because it made sense, business-wise and quality-wise. You ship when it’s more costly not to ship. 

The potential cost of shipping could be defined so as to include all the factors that keep people up at night: security incidents, production-down incidents, reputational damage — even loss of life. These would be weighted by their probability of occurrence. The cost of not shipping, on the other hand, would include:

  • loss of revenue, 
  • loss of opportunity and competitive advantage, 
  • the cost of continued development and testing, 
  • development infrastructure costs, 
  • and everything else that goes into keeping a product under on-going development without a supporting revenue stream.

Steve Jobs is quoted as saying to the original Apple MacIntosh team, “Real artists ship.” What he meant by this, I believe, is that software systems (or anything else) must be put in the hands of end users to be valuable to anyone. A system delivers no business value while it is under development. 

A system that never ships, because its developers or other stakeholders believe it’s imperfect, delivers no value at all. And, of course, no system is ever perfect. Even if it did start out being perfect, a real-life system is unlikely to remain perfect given emerging security threats, changes to the underlying software components a given system depends on, and many other factors outside the boundaries of the system itself.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

Years ago, I was lucky enough to work with some PhD-level experts on economically-based business decision making. One then-widely accepted approach to such decision making was probabilistic and risk-based. I was surprised and a little shocked to learn that this often included putting a dollar value on lives lost, in order to calculate potential risk. 

For example, if an airline company wanted to determine whether a potentially life-saving improvement to one of their jets was worth the investment, they would go through a thought process something like this simplified illustrative example using fictitious numbers:

  • Replacement cost of the plane is $100M.
  • The plane carries 200 passengers.
  • Our expected liability for each passenger death is $10M USD (this was in the early 2000s, so today this figure would be closer to $20M USD per passenger).
  • The probability of a fatal crash over the 150,000 flight-hours expected service life of the airplane is 1.78%.

Using these made-up figures, we see that the “expected loss” (probability of loss times the $2.1B potential amount of loss) is $37M USD over the life of the aircraft. 

In other words, if you were going to set aside a reserve to cover future losses from the crash liability for “N” number of airplanes of the same type, you should set aside “N x $37M USD.” If the lifetime probability of loss could be reduced to zero through an investment of $37M per plane or less, then it would be economically justified to spend it on improving the safety of the aircraft. 

If it costs more to reduce the risk to zero, or in general if the amount at risk would be reduced by less than the amount invested, the additional investment to improve safety would not be justified in purely economic terms.

This is a very simplified analysis and perhaps morally repugnant because human life is involved. How can one put a financial value — even double the original value, or $20M in today’s dollars — on an individual human life? 

Yet the alternative is to never ship. If we had to reduce the risk of a fatal airplane crash to zero, no one would ever be able to fly. 

The cost of creating such a plane would so far exceed the potential losses from the current generation of planes that no company (or group of companies, or (probably) nations) would ever be able to make the investment. And even if it were possible to build a perfect plane, external factors like deliberate malice, meteor strikes or other non-engineering factors would mean that some people will still die. The cost of the added investment in safety would also have to be passed along to the consumer, raising the price of travel for the end user — perhaps raising it more than the decreased risk would be worth even to the traveler themselves. 

It’s heartless, but if one wants the benefit, one needs to take the risk. The art is making the risk of loss smaller than the expected reward, to the company and to the customers, who follow their own risk/reward calculus.

We each make risk-based decisions every day, yet we hardly think about them. We risk our lives, to a greater or lesser extent, every time we commute to work. For those who drive in the U.S., the cumulative lifetime risk of dying in a car accident is about 1 in 93. Yet we continue to drive and take other risks, because we believe the benefit outweighs the risk. We also put the lives of our loved ones at risk each time they accompany us in a car, ride a bike, or even go for a walk. We rarely worry about it or think about it, but at some level our brains do the math and decide to take a risk to get a reward. 

Even following a risk/reward model, we can still set the quality bar as high as we like by making the expected cost parameters as high as we choose. Instead of $10M liability per life, we can increase it to $100M or $1B per life, for example. We can continue to invest until an arbitrarily high degree of perfection is achieved — or until we run out of money. However, in the meantime, both the customer and the company are denied the benefits they would get through real-life use of the product. This is also a very real cost. 

We can safely assume you believe your product will deliver value to its users: If you didn’t think so, why would you build it in the first place? If that is your belief, then withholding your product from the market hurts its potential users by denying them the benefits that using your product would bring. While you obviously don’t want to ship them something bad or that doesn’t work, bringing something to market that delivers positive benefits to its users is valuable to them, and therefore worthwhile. 

Considering only the potential risks associated with shipping a product, without weighing the potential benefits internally and externally, is not a sound or a balanced ‘engineering’ approach to ship decisions. Weighing both costs and benefits when making a risk-based ship decision is not a compromise. It’s the essence of a value-based business and engineering approach.

Learn more:

ChatGPT exploded onto the scene in November 2022, and there’s no turning back now. Though certainly not the first conversational AI in the market, ChatGPT has opened a lot of eyes to the myriad ways this technology will change the way we live and work.

Transformational change is no longer a far-off, future state concept. In our own lifetimes and careers, says Dr. Jim Walsh, CTO at GlobalLogic, we’ll begin working alongside a truly creative AI – one that not only executes tasks but understands the full context and business needs of the system it’s developing. One capable of developing the required code for a complex system based solely on human-readable user stories, and even running through sprints and iterations automatically, in a constant state of self-improvement, aided and guided by human developers.

Now, Dr. Walsh can’t put an exact timeline on this, of course. But as we’re already seeing AI-aided coding happen today with tools like ChatGPT and GitHub Copilot, he says he expects that in the not very distant future we’ll start seeing AIs that can write more sophisticated software systems based on natural language specifications contained in user stories, combined with formal logical and physical architecture descriptions.

How Creative AIs Will Transform Software Engineering

Can you imagine? In this ebook, that’s exactly what Dr. Walsh has tried to do. In it, he envisions a typical day in the life of a software engineer working alongside a creative AI with the ability to understand and adapt to business context, personas and user roles, and end user needs.

Picture a creative AI with an actionable awareness of the system’s logical and physical architecture, with a well-developed code generating ability and the capacity to deploy code to a testing environment almost instantly.

What might a day in the life of that software development team look like?

In ‘Software Engineering in the Age of Creative AIs,’ Dr. Walsh walks us through this thought experiment together: 

  • What does a future with no coding or coders look like in practice?
  • Even if creative AIs can generate code that conforms to the specs as given, and even if that code passes exhaustive (and partially computer-generated) acceptance tests enumerated in the user stories, will that be enough to create a software system end users love?
  • What will the future equivalents of today’s product owners, BAs, architects, engineers and testers do? Will their job consist of writing specs and evaluating the output of the AI against what the product owner and technical architect really wanted, both functionally and technically?
  • What will purchased software look like in the future?
  • What will happen when we achieve a constant state of Agile/SAFe sprint review, backlog grooming, product increment planning and sprint kickoff mode powered by creative AIs?
  • How will creative AI as part of the development team impact the way we develop and package software solutions?

Take a walk through the possibilities and envision a future in which an AI can develop all required code for a complex system starting solely from human-readable “user stories.” 

Sure, it’s speculative. But so were Dr. Walsh’s predictions on software and AI from 2009, and over a decade later we know for a fact he wasn’t far off the mark!

Join us in this exploration of how advanced creative AIs may impact our roles as software engineers – and our industry as a whole. We also take a deeper dive into how these future AIs may become true partners in the development process, interactively helping us remove ambiguity from the user stories, identifying missing features and tests, and becoming a full member of the development team.

Click to read Software Engineering in the Age of Creative AIs

More helpful resources:

Hyperautomation means automating everything possible within the organization. Using RPA and AI together in this way can profoundly impact productivity, people management, profitability, and the sustainability of the business as a whole. 

In this guide, readers will learn how cost-effective automations and technologies are helping companies achieve their goals. Learn:

  • What hyperautomation is and why this combination of robotic process automation (RPA) and artificial intelligence (AI) is so powerful.
  • The business benefits of a hyperautomation structure and how it solves common pain points for companies.
  • Which technologies are driving the advancement of hyperautomation tools and strategy.
  • Best practices for integrating hyperautomation in your business.
  • Specific use cases in finance, e-commerce, manufacturing, product development, and healthcare.
  • How GlobalLogic approaches hyperautomation and why we do it this way, with use cases and lessons learned from each implementation.

The healthcare ecosystem is rife with competing interests and forces, from rapidly evolving technologies and shifting government policy to the complex regulatory environment and needs of consumers, payors and providers. Business models are constantly under pressure in this space, and yet innovation tends to be more difficult than in other industries. Legal and policy hurdles, uncertain funding, and evolving revenue models are among the factors complicating digital transformation for healthcare organizations. 

As Chet Kolley, SVP & GM of Medical Technology here at GlobalLogic, shared with Healthcare Innovation News recently, “From complex regulatory constraints and outdated technical models and mindsets to interoperability issues and rapidly changing business models, healthcare is foundationally challenged to handle transformative innovations.”

Given these complexities and competing priorities, where should your organization focus your efforts and resources next? Here are the top trends for innovators and decision-makers in healthcare to keep an eye on in the months ahead.

1. Remote & Virtual Care

The COVID pandemic was telehealth’s watershed moment, as evidenced by a 300% spike in virtual care inquiries in H1 2020 alone. The trend of increased demand for remote and virtual care options continued throughout the pandemic and drove a broad consumer acceptance of these methods of care delivery that we can expect to persist in the years ahead. The patient experience of seeking and receiving care has fundamentally changed – and there are business benefits, too. America’s Health Insurance Plans (AHIP) predicts that telehealth could help save the United States as much as $4.28 billion on health care spending per year. 

Telehealth is just the beginning, and there is much work to be done in the months and years ahead. To shape the future of disruptive innovation in healthcare for everyone’s benefit, there are three major challenges we must tackle on a global and multi-stakeholder level, according to Gaurav Gupta, Vice President - Engineering. The first, he said, is that we “reduce the burden of hospital visits for patients, their families, and caregivers.”

Harnessing the potential of data and technology can streamline physicians’ work, optimize systems, improve patient outcomes, reduce human error, and even lower costs through enhanced web and mobile experiences, he explained.

Other benefits of remote care supported by advanced technology include:

  • Expanded access to healthcare and the democratization of services.
  • Reduced physical contact between patients and their care providers.
  • Improved care for critically or chronically ill patients who need frequent checkups and ongoing monitoring to ensure continuity of care.

Focus on these beneficial outcomes and use them as criteria in evaluating and prioritizing innovations.  

2. Internet of Medical Things (IoMT) & Wearables

Patients are getting more and more involved in managing their own personal health. Our wearables and connected devices help us make healthy lifestyle choices and address specific diseases such as COPD, heart arrhythmia, asthma, pain management, and many others. IoMT devices monitor their own performance, too, using predictive maintenance to reduce costly downtime.

Even insurers are realizing the benefits of wearables, with some offering reduced insurance premiums to those who take preventative measures and provide monitoring data. Businesses are seeing there are advantages to providing them to employees, and they’re becoming less cumbersome to wear around, too. Gartner predicts that by 2024, miniaturizing capabilities will advance to the point that 10% of all wearable technologies will become unobtrusive to the user.

eMarketer predicts the U.S. smart wearable user market is poised to grow 25.5% YoY in 2023, and the diversity of devices on the market is already tremendous. Some of the more popular wearable medical device usages include:

  • Smartwatches for health
  • Wearable continuous glucose monitors (CGM)
  • Wearable pain management devices
  • Wearable cardiovascular disease management devices
  • Wearable EEG monitors

There are many other growing areas where IoT and wearables can be applied to improve patients’ health and overall lifestyle (e.g., smart pills, smart hospitals, patient identification, etc.). Explore more use cases here:

Click to read Internet of Medical Things (IoMT) Case Studies

3. Artificial Intelligence (AI) & Machine Learning (ML)

The role of Artificial Intelligence (AI) is growing and is expected to be one of the major trends in healthcare in the upcoming years, with the demand for precision medicine and cost reduction being key drivers. AI can transform any area of healthcare, from hospital workflow tasks to diagnosing health conditions, providing process automation, and increasing diagnostic accuracy.

AI mimics human reasoning using big data processing and pattern recognition, making quicker and more precise work of data analysis for medical research, diagnostics, long-term care planning, and more. AI and ML are also fueling rapid advancement in how digital twins are being used in healthcare, where they are helping to improve patient and clinician experiences, patient data security, 

Many companies — from startups to major players like IBM, Google, and Microsoft — already have their own AI healthcare projects and are investing in this area more and more. Soon, AI and machine learning technologies will be used across the entire healthcare ecosystem, from simple consumer health applications to complex disease management and clinical decision support.

Here are just a few examples of how AI/ML are being applied in healthcare today:

  • AI/ML algorithms are being used to obtain insights to improve diabetes care and outcomes. 
  • Giving human radiologists an AI assist in analyzing and reading images, enabling faster processing times and the detection of anomalies that escape the human eye.
  • AI chatbots powered by NLP gather and “triage” patient information, directing queries to the right medical professional.
  • Pattern recognition in patient genetics and healthcare data analysis to aid in tailoring treatment to the patient’s unique needs.
  • Significantly reducing the drug development cycle with AI-power efficiencies throughout the process.

4. Medical Robotics & Embedded Devices

Robots are revolutionizing the medical world, and mobile robotic applications are one specific use case with major impacts on patient experience. Collaborative mobile robots can be adapted and waterproofed to assist patients with functional disabilities in showering, for example, which otherwise requires the aid of a human caregiver. This system enables the patient to shower alone, supported by the robot acting on their commands, returning both dignity and independence to the patient. 

Robots can also be used for rehabilitation and physical therapy (e.g., bionics, exoskeletons, next-gen wearable robots), elder-care assistance, autism (i.e., to enhance social interaction skills), and simplifying surgery. In fact, surgical robots comprise the largest component of the medical robotics market. Frost & Sullivan forecasts that by 2025, 80% of surgical procedures are likely to be performed by robots.

Embedded devices have become a fundamental part of how medical treatment is delivered, too. Growth and innovations in the space are being propelled forward by the increased computational power and quality of visual presentation in modern mobile devices, the advent of 5G, and consumer demand for preventative care. Embedded solutions are being used for:

  • Patient monitors
  • Surgical robots
  • Cochlear implants
  • External and implantable cardiac defibrillators
  • Insulin pumps/glucose monitors
  • Ultrasound machines
  • Pain management systems

Explore two use cases, a defibrillator/patient monitoring system and a next-generation insulin pump, here:

Click to read Embedded Medical Device Software Development Case Studies

5. Healthcare Data Intelligence

Having a big data strategy is imperative for making improvements to patient care and experience by reducing medication errors, facilitating preventative care and solving persistent pain points caused by fragmented, siloed patient data. 

It’s just as important for research and clinical trial companies, too, which must stay on top of cutting-edge techniques and opportunities and improved testing processes for analyzing large datasets. Blockchain is one technology proving effective in improving record accuracy and preventing healthcare data breaches. 

Blockchain-based healthcare systems can solve various challenges, such as data interoperability, integrity, security, portability, and many more. Medical records and information about transactions between patients and their healthcare professionals are more accessible to all parties, including insurance providers, even as security is enhanced, thanks to blockchain technology.

Conclusion

Innovative healthcare technologies are making healthcare more accessible, affordable, and personalized for patients. 

These solutions empower physicians and other healthcare providers to build trust and better serve their patients’ needs with faster, easier access to test results, dosing recommendations, medical imagery, and other healthcare data needed to impact patient outcomes positively. 

GlobalLogic helps our healthcare partners revolutionize patient and clinician experiences and outcomes through our deep experience in SaMD, IoMT, health data intelligence and diagnostics, and regulated software development. We help some of the world’s leading Medical Technology, Medical Device, Clinical Research, and Diagnostics organizations bring products to market faster, uncover and capture new revenue streams, and transform healthcare through technology and innovation. 

How can we help you?

More helpful resources:

Developing a platform and populating it with content is just the first step in a complex journey to becoming a top OTT brand. Leaders in the space are increasingly delivering experiences that are not only engaging but immersive and interactive, thanks to increasing AR/VR adoption, broadening consumer awareness of the Metaverse – and the power of predictive personalization.

Top streaming video on demand (SVOD) services have disrupted both TV and film, yet face mounting pressure as technologically savvy consumers grow increasingly discerning and cost-sensitive. OTT companies also face threats from a deluge of free social content, fast-shifting consumer preferences and behaviors, and legacy business models that may not withstand the next groundswell of technological change.

North American subscriptions have slowed, a trend Deloitte attributes to consumer frustration with having to manage multiple subscriptions, losing content to services they do not subscribe to, and receiving poor recommendations. Across all SVOD services, churn has hovered at around 37% since 2020 in North America and 30% in the UK, Germany, Brazil, and Japan.

Even so, the future is bright for OTT players using technology effectively to improve their understanding of individual viewers and serve those customers higher quality, more relevant content. Revenue in the OTT video segment is projected to reach US$316.10B this year, with an annual growth rate (CAGR 2023-2027) of 10.01% driving a projected market volume of US$462.90B by 2027.

Of course, some will take a larger share of those revenue gains than others. 

Is your company positioned and equipped to deliver the highly personalized, exceptional OTT experiences today’s customer craves?

Media consumers are looking for new methods of bundling and accessing content, calling on OTT brands to shift the value proposition and innovate quickly as opportunities emerge. Boosting subscriber retention, adding new lines of revenue, spurring engagement, and even winning customers back (nearly one-quarter of subscribers have churned and returned in the past 12 months) all depend on the company’s ability to deliver outstanding experiences that feel crafted uniquely for each viewer.

OTT companies are being challenged to demonstrate a deep and meaningful understanding of their customer with easily accessible, carefully curated content at every step in that viewer’s journey.

In How to Elevate Your OTT Through Predictive Personalization, you’ll explore the latest AI and machine learning technologies and how to apply the ‘5 Rs’ of personalization at scale. Example use cases illustrate specific ways to optimize subscribers’ experience at various touchpoints, while our sample user journey walks you through creative ways to use ML and predictive analytics to apply personalization in the moments that matter to your customers.

This free GlobalLogic guide includes tips for implementation, AI/ML techniques, sophisticated algorithms and predictive analytics to inspire your OTT strategy, and other recommended resources to help your company not only imagine the possibilities but execute, too.

Click to read How to Elevate Your OTT Through Predictive Personalization

Want to learn more? Get in touch and a member of our expert OTT digital engineering team will reach out to see how we can help.

I was talking with my daughter, a creative and a commercial writer, about ChatGPT recently. At a client’s request, my daughter has begun using ChatGPT for some of her commercial work. She’s also started to experiment with AI-based image generation tools as a means for creating cover art and illustrations. She is often amused by what ChatGPT comes up with, but it’s clear to me that the potential is there for it to become a serious creative tool in diverse fields in the near future. This got me thinking… 

Could brilliant late 16th/early 17th century poet and playwright William Shakespeare have been replaced by an AI? 

Or might Shakespeare have used an AI, if he had one, as a creative tool? To experiment with this idea, I started with a sonnet (sonnet 18) actually written by Shakespeare himself somewhere in the late 1500s and first published in the year 1609:

Shall I compare thee to a summer’s day?
Thou art more lovely and more temperate.
Rough winds do shake the darling buds of May,
And summer’s lease hath all too short a date.
Sometime too hot the eye of heaven shines,
And often is his gold complexion dimmed;
And every fair from fair sometime declines,
By chance, or nature’s changing course, untrimmed;
But thy eternal summer shall not fade,
Nor lose possession of that fair thou ow’st,
Nor shall death brag thou wand'rest in his shade,
When in eternal lines to Time thou grow'st.
    So long as men can breathe, or eyes can see,
    So long lives this, and this gives life to thee.

On the assumption that Shakespeare was writing about a young person (which I think is a reasonable guess from the content of the poem and the fact that Shakespeare was 36 himself in the year 1600), and that he was writing about a woman (not at all certain, as some closely related sonnets were clearly written to a man — but I wanted to make my request to the AI as concrete as possible so I had to pick), I asked ChatGPT to “Write a Shakespearean sonnet comparing a young woman to a summer's day.”

Recommended reading: Tips for Staying Relevant in the Age of Creative AIs Like ChatGPT 

ChatGPT Writes a Shakespearean Sonnet

Here’s what I got back:

Oh fairest maiden, like a summer's day,
Thou art a sight that doth my heart beguile,
Thy gentle beauty, like the sun's warm ray,
Doth light my soul, and make my spirit smile.

Thou art more lovely than a summer's morn,
When golden light doth gild the earth below,
And larks do sing to greet the day reborn,
As thou dost grace the world with thy sweet glow.

The summer's day, it doth too quickly pass,
But thou, fair maiden, shall forever shine,
For in my heart, thy beauty shall amass,
And make my world a summer ever fine.

So let me bask in thy sweet radiance bright,
And be the moon that mirrors thy delight.

Taste in poetry differs greatly but from my personal perspective, the AI-generated sonnet is actually reasonably good. Keep in mind that my skill set is in science, math and engineering — not literature. 

The rhyme scheme (day/ray, beguile/smile, etc.) seems mostly unforced (though I’d question (pass/amass), and while somewhat disjointed, the poem flows reasonably well from idea to idea. The imagery seems appropriate, comparing the loved one’s beauty to sunshine, birdsong at sunrise, and to the warmth of the day. The poem even captures something of Shakespeare’s original nuance that summer is brief, and that beauty can be, too. 

But comparing it with Shakespeare’s original, it’s clear that even though Shakespeare claims in the first line of Sonnet 18 that he’s comparing his love to a summer’s day, in the subsequent lines he actually contrasts the two (“thou art more lovely and more temperate” [emphasis added]). 

Refining Our Ask of the Creative AI

So, let’s try again by asking ChatGPT to “write an original Shakespearean sonnet contrasting a young woman and a summer's day.” Here’s how the AI responded:

Thou art more fair than any summer's day,
With beauty that doth put the sun to shame,
For though the day may bring its warm display,
Thy loveliness outshines its brightest flame.

The sun may rise and set without a care,
And scorch the earth with its unyielding heat,
But thou art gentle, with a heart so rare,
And bring'st a calmness that is oh so sweet.

The summer's day may come and go with ease,
But thou art constant, with a heart so true,
Thy beauty brings a sense of perfect peace,
And fills my heart with love that's ever new.

So though the summer's day may fade away,
Thy beauty shall forevermore hold sway.

This, I think, is somewhat closer to Shakespeare’s original intent. In the closing stanza, the AI-generated poem touches on the idea that while summers are brief (especially in Shakespeare’s native England), his love will stay beautiful forever. However, it does not state the reason for this, as Shakespeare does in his original: namely that his love’s beauty is captured forever in the poem itself (“So long as men can breathe, or eyes can see,/So long lives this, and this gives life to thee.”) 

Okay, Perhaps Our Creative AI Needs More Guidance

Let’s try one final time by asking ChatGPT to “write an original Shakespearean sonnet contrasting a young woman and a summer's day, emphasizing that his love's beauty is captured forever in the poem itself.” Here’s what the AI came up with this time:

Fair maiden, thou art like a summer's day,
With beauty that doth strike the heart so true,
But though the day may soon slip away,
Thy loveliness shall live in this poem anew.

For as the sun may set and leave us cold,
And summer's warmth may soon be but a dream,
Thy beauty, in this verse, shall still unfold,
And like a flower, forever in bloom, gleam.

The summer's day may be but fleeting bliss,
A momentary warmth, soon to be gone,
But in this sonnet, thy beauty shall persist,
And shine eternal like the brightening dawn.

So though the summer's day may fade from view,
Thy beauty, in this poem, shall be ever true.

In my definitively-not-an-English-major mind, I think this AI-generated poem is fairly close in its intent to my admittedly distinctly amateur understanding of Shakespeare’s original. 

Technically, the poem is not as good as Shakespeare’s, in my opinion; for one thing, some of the language construction is a bit forced. For example, the word “gleam” chosen to rhyme with “dream” only makes sense if it refers to “Thy beauty” in the previous line, since flowers do not “gleam.” It’s not incorrect to construct a sentence this way, especially a stanza in poetry, but it’s awkward and somewhat confusing, again in my layman’s opinion. Also, some of the line endings seem chosen simply because they rhyme (true/anew, cold/unfold) and don’t add nuance to the poem itself. 

On the other hand, Shakespeare’s rhyming word choices sometimes reinforce and contrast with each other (shines/declines, fade/shade), adding a further dimension to the poem. Also, I find Shakepeare’s phrases (“rough winds,” “darling buds of May”) more vivid in the imagery they invoke, personally. But I think the major ideas that at least I myself take away from Shakespeare’s original are reflected in the AI-generated sonnet in some way, and the piece itself is basically serviceable as a poem.

Even if you agree with me that it does, basically, embody the same concepts as Shakespeare’s sonnet, would this AI-generated poem live on and inspire people for over 400 years, as Shakespeare’s has done? 

Part of the reason for the original Shakespeare sonnet’s fame are certainly cultural and historical. We were taught it in school and told it was good, so we believe it is good. We are also very familiar with the Shakespeare original, so it has the allure of an old friend, and resonance from the various times in our lives we encountered it before. It has the “first mover” advantage where you probably had already read it, in most cases, before you saw the AI-generated version. The works of Shakespeare also shaped the English language, to some degree, so our standard of measure is to some extent biased to make us appreciate the original.

Even doing my best to account for these factors, though, I have to say that the AI-generated poem does not compare favorably to Shakespeare’s original, and will not stand the test of time in the same way. 

If I had encountered the AI-generated version before I read the original Shakespearean Sonnet, I might have been excited by it. However, that excitement would not be because of the way it is expressed but rather because of the novelty (to me) of the thoughts behind the poem: namely, the idea to contrast “my love” and a “summer’s day,” and that unlike a summer’s day, that his loved one’s beauty will not fade because it is immortalized by the poem itself. 

However, we fed those thoughts to the AI in our original request; these ideas were not generated by the AI itself. What the AI did was to express those ideas, adding concrete illustrations, and phasing the result in a poetic form.

Original Thinkers Have Nothing to Fear of the Age of AI

This in no way lessens the achievement here by ChatGPT— what it can do is truly remarkable. That it can generate poems this good in seconds, on demand, and actually expressing the thoughts we gave it, is absolutely mind-boggling. Imagine giving the same instruction as an assignment to a human being. What would we get back, and when (if ever)? 

Of course, Shakespeare’s original sonnet (and all his works) were certainly ingested and processed by the AI, so it’s no coincidence that the original would inform the AI’s output in some way. We can’t hold that against the AI, however; nearly every human 21st century poet in the west — and many from other parts of the world — would have the same advantage of having read Shakespeare. Even given that, would most humans do as well?

Our conclusions from this exercise:

I don’t think Shakespeare or any original thinker has anything to fear from AIs. 

An AI is a potentially powerful tool that can help thinkers express original ideas in useful ways, and to help them generate new ideas as well.

A major driver behind many written, artistic and other works is not originality for its own sake, but rather to express what the author wants to say to a particular audience. 

Other people — or AIs — may give expression to those thoughts and feelings without taking away from the author’s intent. However, wherever they originated, when the written (or artistic expression) of ideas or feelings reflect one’s own, conveying that congruence can itself have value, depending on the audience. 

For example, providing an expression of my thoughts and my feelings to my loved ones can be significant to them even if I worked with an AI (or bought a greeting card, or bought a work of art or a gift) that expressed precisely what I wanted to say.

While ChatGPT and other AI systems in the pipeline are starting to usurp some of the functions that we thought of as human — creating art, poetry and computer programs, for example — the concept behind “delegating” creativity is nothing new. Executives often tell their assistants or their marketing departments the broad outlines of a communication that will later go out over their name. The actual content will then be written by an assistant, or by marketing, HR or another group. The fact that celebrities use ghost writers to produce works published under their own name is well known. 

In our everyday lives, we often search for a greeting card written and drawn by someone else that nonetheless conveys what we wish we could say (as poetically or beautifully) to a loved one. We buy art and other gifts created by other human beings that convey some feeling or idea we would like to express or remember.

Are truly creative people threatened by the fact that there are other creative people in the world? Maybe the insecure ones are, until they gain more confidence. 

But in general, I think creative people are more likely to be spurred on by the other creative people around them. Shakespeare, for example, is thought to have become a better writer because of his contemporary writers — and sometimes rivals and critiques — Ben Johnson and Christopher Marlowe. Having another creative person to bounce ideas off of, or to challenge your own ideas, is often the path to excellence. 

I think creative AIs like ChatGPT will assume that role: they will make us more creative, and better at what we do. I think Shakespeare might have used something like ChatGPT to help him get started generating new concepts, to do research (he wrote a lot of history), and to look for typos and grammar issues in his own work, for example.

And for those areas where creative AIs can do better work than a given individual can (I'm a terrible graphic artist, for example), they can help us to express our ideas and feelings in ways we can imagine, but otherwise could not bring to life unaided. 

Fearing a new source of creative expression is about as futile as living in fear that the person in the next desk is smarter than you, or a better coder, or a better writer, etc. Where that is true, your best strategy is to have the confidence to enlist their help — or to emulate their example and learn to do better. Where it is not true, your best strategy is to find what you do uniquely well, and partner with your office mate to produce something really great. 

AI or person, learning from it and partnering with it is what I think Shakespeare would have ended up doing with a technology like ChatGPT. Or, as Shakespeare himself might say: "To use AI, or not to use AI: That is the question."

More helpful resources:

Overview & Best Practices 

Cloud infrastructure entitlement management, or CIEM, is the process of managing and controlling access to cloud-based resources within an organization. It’s a way to ensure that the right people have the right level of access to the right resources, while also maintaining security and compliance with organizational policies and regulations.

CIEM includes managing user permissions, access controls, and other entitlements for cloud services, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

As organizations increasingly rely on cloud infrastructure to support their business operations, having a robust CIEM system in place is essential. This helps to minimize the risk of security breaches, data leaks, and other security incidents that can harm the organization's reputation and bottom line.

In this article, you’ll find an overview of what cloud infrastructure entitlement management is, how it works, what challenges to watch out for, and the benefits of getting it right. You’ll also find a helpful list of best practices to guide a successful CIEM strategy in your organization.

The Importance of Cloud Infrastructure Entitlement Management

CIEM is an essential component of any organization's cloud security strategy and should be a top priority for any organization with cloud-based services. It can help to streamline access management processes, reduce administrative burdens, and improve overall operational efficiency. By automating entitlement provisioning, de-provisioning, and access requests, organizations can reduce the likelihood of errors and ensure that resources are available to users who need them promptly.

CIEM works by establishing policies and procedures for managing entitlements to cloud-based resources, automating entitlement provisioning and de-provisioning, monitoring entitlements continuously, and auditing entitlements regularly. Without a proper entitlement management system in place, organizations may face a variety of security and compliance risks, including unauthorized access to sensitive data, data breaches, and regulatory violations.

Benefits of Cloud Infrastructure Entitlement Management 

The benefits of CIEM include and aren’t limited to:

Improved security. Effective entitlement management can help organizations ensure that only authorized users have access to their cloud resources, reducing the risk of data breaches and other cyberattacks.

Regulatory compliance. Entitlement management can help organizations ensure compliance with regulations such as HIPAA, GDPR, and PCI-DSS by enforcing access control policies and auditing entitlements.

Cost savings and operational efficiency. Effective entitlement management can help organizations save costs by eliminating unnecessary access rights, reducing the risk of over-provisioning, and automating user access requests and approvals.

Recommended reading: 4 ways cloud helps future-proof your teams

Challenges in Managing Cloud Infrastructure Entitlements 

Managing cloud infrastructure entitlements can be demanding due to the complex nature of cloud environments, the dynamic nature of cloud resources, and the need to ensure that only authorized users have access to cloud-based resources. Among others, these factors are paramount:

Oversight of access to ephemeral resources

In today’s cloud environments, people might provision or de-provision resources at any given moment. Managing and monitoring access to those resources requires a dynamic approach.

Over-permissioned access to cloud resources

With a manual approach to permissions, many enterprises err on the side of granting access to excessive permissions that significantly raise the risk of a security breach. 

Multi-cloud complexity

A vast number of companies adopt a multi-cloud approach - this leaves enterprises without a single, unified approach to managing permissions across all of their cloud resources.

Gaining clarity at scale

Enterprises that err on the side of over-permissions need a clear understanding of what entities have more privileges than they ought to. That clarity will allow them to reduce the risk of a security breach.

Consequences of Poor Entitlement Management

Implications of poor entitlement management can result in security breaches, data leaks, regulatory violations, and other security incidents that can harm the organization's reputation and bottom line. Among others, these few crucial implications are worth your attention: 

Security breaches

Inadequate entitlement management can result in security breaches, where unauthorized users gain access to sensitive data and resources. This can lead to data theft, financial losses, and damage to an organization's reputation.

Compliance violations

Failure to manage entitlements properly can result in compliance violations, where an organization fails to meet regulatory requirements for data privacy and security. This can result in legal and financial penalties, as well as damage to an organization's reputation.

Financial losses 

Insufficient entitlement management can also result in financial losses, as over-provisioning can lead to unnecessary expenses, and under-provisioning can result in decreased productivity and operational inefficiencies. Additionally, security breaches and compliance violations can lead to direct financial losses, as well as indirect losses such as reputational damage and lost business opportunities.

Best Practices for Cloud Infrastructure Entitlement Management

The vast majority of practices intended to be preventive are aimed at avoiding unnecessary risks for organizations while establishing and overseeing cloud entitlements. Each is profoundly rooted in the cloud security paradigm and has been proven in implementation. 

A. Establishing a policy

To effectively manage cloud infrastructure entitlements, organizations should start by establishing a policy that outlines the rules and processes for entitlement management. This policy should include the following:

  1. Defining entitlements: Clearly define the different types of entitlements, such as user access levels, permissions, and roles.
  2. Assigning responsibilities: Designating individuals or teams responsible for managing entitlements and enforcing the policy.
  3. Setting access control policies: Establishing policies for granting and revoking entitlements, managing password policies, and limiting access to sensitive data.

B. Implementing automated provisioning and de-provisioning.

Automating the process of provisioning and de-provisioning entitlements can help to ensure consistency and reduce the risk of errors. This process can be accomplished through the use of workflows and integration with HR systems for user lifecycle management. The following steps are essential for effective automated provisioning and de-provisioning:

  1. Automating user onboarding and offboarding: Streamlining the process of adding and removing users from cloud infrastructure entitlements.
  2. Using workflows to ensure consistent entitlements: Creating standardized workflows for requesting, approving, and provisioning entitlements.
  3. Integrating with HR systems for user lifecycle management: Synchronizing the entitlement management process with HR systems to ensure that changes to user status are reflected in entitlements.

C. Monitoring entitlements continuously.

Real-time monitoring of entitlements is critical for detecting and preventing unauthorized access. Organizations can use the following methods to effectively monitor entitlements:

  1. Real-time monitoring of entitlements: Continuously monitoring entitlements for unauthorized changes or access.
  2. Alerting on entitlement violations: Setting up alerts for unauthorized changes or access to entitlements.
  3. Using machine learning to identify anomalous behavior: Using machine learning algorithms to identify and flag suspicious behavior, such as unusual access patterns.

Recommended reading: Cloud Sandboxes: How to Train Your Engineers To Go Cloud-Native

D. Auditing entitlements regularly.

Regular auditing of entitlements can help to ensure that entitlements comply with the organization's security policies and regulatory requirements. The following steps are critical for effective entitlement auditing:

  1. Periodic review of entitlements: Conduct regular reviews of entitlements to ensure they are still necessary and in compliance with the organization's security policies.
  2. Identifying and removing unnecessary entitlements: Identifying and removing entitlements that are no longer needed or that pose a security risk.
  3. Conducting compliance audits: Performing compliance audits to ensure that entitlements comply with regulatory requirements.

E. Providing self-service access requests.

Empowering users to request their entitlements through a self-service portal can help to reduce the workload on IT and increase user satisfaction. To effectively provide self-service access requests, organizations should consider the following:

  1. Empowering users to request entitlements: Giving users the ability to request entitlements through a self-service portal.
  2. Providing a user-friendly interface: Creating a user-friendly interface that makes it easy for users to request entitlements.
  3. Automating approval workflows: Streamlining the process of approving entitlement requests through automated workflows.

F. Using a unified access management platform. 

This enables establishing a centralized policy abided by the entire organization that precludes the option of management by a bias, influence, or authority. It eliminates excessive permission to strictly sensitive cloud data.       

  1. Centralizing entitlement management: To effectively manage cloud infrastructure entitlements, organizations should adopt a unified access management platform that centralizes entitlement management across different cloud environments. This can provide a single source of truth for all entitlements, making it easier to manage, monitor, and audit entitlements.
  2. Integrating with identity and access management (IAM) systems: A unified access management platform should integrate with an organization's identity and access management (IAM) systems to enable consistent management of users, groups, and roles across different cloud environments.
  3. Providing a single source of truth for entitlements: By integrating with IAM systems and centralizing entitlement management, a unified access management platform can provide a single source of truth for all entitlements. This can help ensure that entitlements are consistently managed across different cloud environments, reducing the risk of security breaches and compliance violations.

Overall, implementing these best practices for cloud infrastructure entitlement management can help organizations reduce security and compliance risks, achieve cost savings and operational efficiency, and improve their overall cloud security posture. 

Organizations must prioritize entitlement management as a critical security function and continuously improve their entitlement management practices to stay ahead of evolving cloud security threats and vulnerabilities.

Key Takeaways

CIEM is critical for maintaining security and compliance in cloud environments. It helps organizations control access to cloud-based resources, reduce security risks, and ensure compliance with policies and regulations.

A robust CIEM system can help organizations to:

  • Control access to sensitive data and resources
  • Enforce security policies and best practices
  • Maintain compliance with relevant regulations and industry standards
  • Reduce the risk of data breaches and other security incidents
  • Improve overall cloud security posture

Organizations must prioritize the implementation of cloud infrastructure entitlement management to mitigate security risks and comply with regulatory requirements. By following best practices such as establishing policies, implementing automated provisioning and de-provisioning, and monitoring entitlements continuously, organizations can improve their overall security posture and reduce the likelihood of security incidents.

As cloud adoption continues to increase, CIEM will continue to grow increasingly important. Organizations that fail to implement proper entitlement management practices may face serious security and compliance risks. Investing in cloud security is a long-term strategy for success, and organizations should recognize the value of proactive entitlement management as part of that strategy. 

More helpful resources:

  • URL copied!